E-Filing Not Mandatory for Non-Residents, Private Discretionary Trusts: IT Dept

The Central Board of Direct Taxes (CBDT) issued a press release on Friday 3rd Aug, 2012, stating relaxation from compulsory e-filing of income tax returns for assessment year 2012-13 for agents of non-residents and private discretionary trusts.

Income tax authorities have noticed that, the agents of non-residents are facing difficulties with the existing e-filing software. This is because a non-resident will have more than one agent in India or a person in India may be an agent of more than one non-resident individual who cannot be covered by the existing e-filing software. The existing e-filing software works on the principle of one assessee, one PAN and one income tax return.

Also, private discretionary trusts who need to file returns in the status of an individual, having total income of above Rs.10 lakh are also facing problem in filing their returns electronically. Because of the existing e-filing software which is not built to incorporate that provision. By this reason, private discretionary trusts with exceeding Rs.10 lakh need not file e-returns for the assessment year 2012-13. E-filing of income tax returns in above two cases, is thus, not compulsory.